On January 20, 2025, the UAE Cabinet of Ministers issued Decree No. 3 (the “Decree”) stipulating the threshold amounts for obtaining prior approval for transactions under the new merger control regime in the UAE.
The Decree has been adopted in addition to the new competition law in the UAE (the “New UAE Competition Law”), which came into effect on December 29, 2023.
The new merger control regime introduces the specific conditions including the concept of “economic concentration” and financial thresholds for transactions and parties involved. If the established thresholds are exceeded, the respective merger filings must be submitted to the UAE Ministry of Economy for obtaining approval prior to the completion of transactions.
As a result, undertakings should analyze any transaction to determine whether it falls within the specific conditions for mandatory merger filings in the UAE.
The Decree will take effect on April 1, 2025.
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